tv Geraldo at Large FOX News August 15, 2011 1:00am-2:00am EDT
>> this week on the journal editorial report. wall street wild ride as markets act to the credit downgrade. is it 2008 all over again and is obama losing the left. conservative criticism of the president is nothing new and big labor spends millions in wisconsin's recall lessons and comes up short. what the vict row means for other states attempting union reform. welcome to the journal
editorial report. i am paul gigot. is it 2008 again? many are asking that question. what is different now and what is the same. wall street journal and editor. dan, and columnist mary ogradey and steve moore. mary annie, are we headed for another recession? >> i wish i knew. on the one side, you have a lot of talk about what glate shape corporate balance sheets are in. but the national fed federation of business. >> that is the small businesses. >> it declined for the fifth month in a row and 10 percent of the small business owners said that only 10 percent
expected an increase in employment and 11 percent said they expected to have fewer workers over the next 3months. small business is such a key to the health of the economy that if the small business sector is so negative, it is not a good sign about the health of the recovery. >> steve comparison with 2008, are all over the place. are we better or worse off going into thoo recession? >> i don't think it is 2008 again. i believe what is happening with the u.s. economy is a repudiation of obama nomics. virtually everything that obama has done with the respect to the economy is negative in my opinion and led to more unemployment. this is a repudiation of the economic model, paul, where we have thrown trillions of spending at this and in addition to that, we have seen
pedal to the metal money and it hasn't worked. >> it hasn't worked but why better than 2008? >> balance sheets are a better off. >> corporate? >> household balance sheets have improved some what, but the problem is government balance sheet looks rotten and sparked the market sell off and fear of recession was the debt deal. people said this is not good enough given the size of enormous debt. >> dan, how do you see it? >> there are similarities to 2008. in 2008 what happened sunday evening in september lehman brothers goes down and suddenly we are in a financial crisis. that was the bursting of the housing bubble . prices had gone up to unsupportable levels. we editorialized about it for two years. what we are seeing now, is the
bursting of the federal spending bubble. we needed s&p flip the switch and everyone realizes that what we are doing 25 years is no longer supportable. the question is, is the political market place going to put in the right policies to react to them as they did not do to the housing bubble. >> housing prices fell 25 to 30 percent. >> with the government doing all it can to thwart the housing. >> and i agree with that. how much further can they fall there? >> there is a similarity. markets are nervous about what is going on in europe and in particular, what the nervousness are about. u.s. money markets are holding a lot of exposure to the european banks that have exposure to european sovereign vet. >> money market investment funds. >> and we are learning here,
every time the fed interest rates too low for too long. money markets start to go to the other places where there is more risk where there is more yield. if they couldn't get return in the u.s., they have gone to europe and they have bought french banks that have big exposure to italy and spain and a lot of nervousness about what may happen. >> there is something else going on in europe that is very much glossed over in the united states. europe also has had 40 years obese welfare states incredibly generous entitlement programs and the weight of that system is kind of collapsing on collective europe and that should be a warning signal in my opinion for the united states. >> but the fact of the matter, the concern is the exposure that u.s. money market funds
might have to that collapse. >> the federal reserve would extend near zero interest policy for two years and to the middle of 2013 to reassure interest rates are not going up any time soon, is that the answer? >> that is not the answer. that so smacks was desperation. what else are we supposed to do. obviously the congress and the president have run out of ideas. the president run out of ideas. to steve's point, the white house for two and half years is running out of the context that you can inject a lot of money to a recessionary economy and stimulate demand. and you substitute government spending for private spending. that hasn't worked and as to whether we are in a recession, it is symantic and we are in a double dip obviously . you can't come out of it
growing less than two percent and so what is plan be? >> that is inflation 40 or 50 percent. a economist recommends that. is that something that, is that the answer? that will degrade the amount of debt. >> remind me paul of the time we are saying we will have four percent inflation and that will stop right there. >> no more. and exactly. that is really where the risk is . once people think that that is what they are going to do, you get inflationary expectations that tend to send inflation higher . people misallocate capitol. >> and gold goes to 2000 dollars. >> it is good if you are a gold investor . okay, it is the bad news bears here and we'll watch this . the leadership vacume. president obama's response to the economic turmoil and why
markets will rise and fall but this is the united states of america. no matter what some agency may say, we always have been and will be a triple a country. >> that president obama on monday responding for the first time to last friday's s&p downgrade, the dow jones industrial average that had fallen 410 fell another 20 while the president was speaking and down 634 points, the worst one day drop since december 2008 . the president's response drew criticism not the least of the liberal elite. >> inability to grab a microphone and assuage america's fears. he doesn't like the bully
pulpit just the professors lectern. now, dorothy, we have known the president was more professor than populas thumper. that was posed to be an asset and why is it suddenly a problem. >> it is called repressed rage. >> on the part of whom? >> on the left media. it came and you know, something about suppressed resentment makes it much more powerful. you had not just maureen dod. but westin who said and i quote. we are hostage to a president to o is not just a republican extremist, but a president who will do anything to get elected. >> what is the roots and what are they angry about? >> it is hard to say reality
is hitting them hard in the fast. he is not what they thought . they thought wonderful things about him. he is a man who we forget the fact that hoe had an undistingished record. he published nothing and voted 200 some types. >> this is not news is crit semp that republicans offered in 2008. what i want to know why is the left suddenly turning on him now? he's done what they wanted. hoe gave them the stimulus. they wanted national health care and he gave it to them. it is a victory for the state expansion. dod frank. he gave them what they want? what is the problem now? >> confrontation with reality. there are things you can't avoid even if you are a complete partisan and he looks
objectively speaking terrible. his public performances is terrible and you have one or two signals in the respectable left media and opened up the resentment of everything. >> i think something else is going on, there is a kind of political efant limp. >> really? >> both sides rather engage in political street fight have it out and win . in this case, the left wants obama to go out there. moveon.orgdid a contract with the american dream. they have 10 bullitin point with massive spending and new tax. >> the criticism of obama that he is too detached and not fighting hard enough. >> he's not attacking the right and rich and corporations hard enough to make them feel good. same way we went through the
fight with the debt and right wanted to push the government in default. go into default we'll win. >> there is one other thing that you are not touching on that is important that developed and paul, that is the issue of whether the president is up for the job and whether he can handle the big economy problems. he was a community organizer and doesn't have business or private experience. that is a big, big defect for him . it is interesting if you look at press conferences. for the first two years they gave him worshipful treatment and now they are questioning him. don't you take responsibility for the kinds of things that are happening? he blame its on japan and high oil prices and tsunami. the press is turning on him as well? >> is it happening because the results have not - >> yes, of course. >> economy is not growing at
three percent wouldn't everybody be happy. >> yes, but give them credit on the left which we never do. i wouldn't. but in this case, they see that this cannot be defended and when the election comes and there is the step that will happen on the part of the left media to go back anybody but a republican president they will have to remember that the internet never lies and all of these pronouncements against obama will be there in lifing color. >> they will vanish in thin air. >> they will not. >> they will come back and support him because they fear republicans more than they are disappointed with obama. >> absolutely. >> what about the president's proposal. he has path reform and extend jobless benefits for a greater period of time. extending the pay roll tax cut for another year . infrastructure bank. will they generate growth now? >> they will not generate
growth but the american people don't believe they are going to work. most people is too much government spend too much debt. the president keeps loading on with plant b being the failed planae. he doesn't have new ammunition to shoot in the recession. the biggest problems he faces is with independent voters who voted for hope and change and they are seeing it is not working out so well >> he understands he has to attract the independent voterss and which is the reason he can't throw red meat. >> and go in for the big government job's problem and government hiring millions of americans. that's what the left really wants is a trillion dollar stimulus. >> that is why hoe can't do it. they believe if he do does that he will win .
he will lose and his people know that. >> when we come back, a bad night for big labor after powering million in wisconsin's big election. unions came up short. unions came up short. what it means for the over time, my lashes thinned. after 40, i didn't have enough lashes. i'd heard of latisse® but had questions. my doctor said... latisse® is the only fda approved prescription treatment for inadequate or not enough lashes. now with latisse® my lashes are longer, darker, with more than double the fullness in 16 weeks. if you are using or have used, prescription products for eye pressure problems, use latisse® under close doctor care. latisse® use may cause increased brown pigmentation of the colored part of the eye which is likely permanent. eyelid skin darkening may occur which may be reversible. if you experience eye problems or have eye surgery, consult your doctor. common side effects include itchy eyes and eye redness. i trust latisse® and i use it too. my lashes changed as i got older. now i use latisse®.
colin both sides are claims victory. republicans democrats said they picked up two seats. >> i don't think there is any question the republicans took the day. unions really. this was the big coup of revenge and they picked up two seats and might lose another seat of a democrat in recall elections next week and in the end, they are going to have spent 30 million and not going to have control of the legislature and they ended up with pie in their face. think about the way they treated this. this was their big battle. they had tv cameras everywhere and the protest. this was unon's big moment to reclaim. >> governor walker was concil tory and said we need to work together democrats and republicans. do you feel they are chastened
and maybe democrats achieved their goal and republicans will be less aggressive with the agenda? >> it was good that walker was and the appropriate way to be. quite frankly, there is going to be an effort to recall walker at some point and so he's going to want to keep the political tensions low. but there is no question that the wind was taken out of their sails . this is a bounce for walker and look at the way people responded to this. it is a boost for his economic policy. he passed comprehensive tort reform and passed a budget without raising taxes. >> what is the political lesson for other states. >> you can try it and survive. >> you can if you have the right policies. one of the things that resulted from the reform for
instance is local school districts in wisconsin have been able to redo their contracts and put their finances back on even footing and avoiding lay offs. the states are analogous of what is going on with the sovereign debt crises. wisconsin, new jersey, california, they had spending that was outrunning their financing and that was the point of scott walker's reform and now it is working. >> what will happen in states like ohio. we have something on the ballot in november that repeals what john casack is trying to do. is this going to give unions a pause about whether to invest in the cause. >> it is a huge victory for fiscal responsibility. it was not just about wisconsin, but about ohio andical and other states trying to take on the
excessive unibenefit for public employees. it sends a resounding message that voters do want change and understand that when a public employee that are getting benefits twice as generous that that simply is not fair. the implications is positive. by the way, too. if other states hear about it. it is worth noting when the whole battle was going on 24-7 coverage . now editorials and no one - on they got it. >> one other pick paul, paul. that eliminated the deductions for union dues. other states are doing the same thing that. is cutting off the political
oxygen for the unions and democratic party. >> what about the larger lesson for 2002, is that mean wisconsin is safe for barack obama or republicans could pick up. they haven't won in a presidential election. >> especially the republicans and independence are understanding that you have to bring the government spending under control. that's what happened in wisconsin. it is a positive thing. >> steve, thanks. one more break and when we come back, hits and misses of the week.
dorothy first to you. >> here is the hit for the people in london who signed the petition outlawing all payment benefit to rioters and looters in london on the ground that no taxpayer should have to contribute who destroyed and looters. so many people signed the petition that the site crashed yesterday. >> mary? >> we need a hit for human beings. i am talking about the news that apple most valuable company in the u.s. and it
took over took exxon has the most valuable in market capitalization. some people argue that natural resours are necessary for prosperity. but what it is about is human ingen witty allowed to flourish in the race for making us better off. i bet on that every time. >> a hit to nasa and the virgin group for announcing they signed a contract with the first space tourism company that has 55 million in deposits for want to be space tourist. it is a good step for nasa which grounded the space shuttle and since everyone thinks that virgin chairman richard branson is from another planet it should be put to good news. >> this is a cheerful posse.
spreading good news and good cheer. thank you very much . that's it for this edition of the journal. thank you for all of my panel. i am paul the president does all he can to spin the blame in the other direction. >> if there had been a willingness to compromise. >> are his efforts getting an f from the liberal media faithful? >> this photo and this label on
his cover. is it more proof of a mean spirited political agenda.renta republican presidential hopefuls in iowa. to toe how did the media react? stionsm makers plans about killing bin laden. >> on the panel this week, writer and judy miller. and liz trota and andrea and alan colmes. i'm jon scott. fox news watch is on right now. president obama returned from camp david and laid the blame on tea party republicans on the downgrading.
>> they were digging in and some used word hostage because they would not raise any taxes at all. >> let's face it. tea party successfully use it as a weapon publicly brought touts brink of catastrophe and politicians have shown a willingness to gamble with the nation's economy. >> jon: downgrade blame game and stock market went in a tail spin triggering an ugly display of finger pointing in the media. it's been front and center all week. wild gyrations, near record drops in the stock market followed by upswings and who is getting the blame for all this? >> the left tried to pin it on the tea party. if you have been reading any of the editorial pages this week, the way the president handled it he took a lot of heat from editorial pages such as the "new york times."
wall street questioned it. even if he is smart and "washington post", says the president comes out and doesn't have a plan. he handled the downgrade very limply and "washington post" accused him of not attempting trying to fix it. >> jon: and what happened to obama? it was titled. he questioned. we are a nation that is being held hostage not just by an extremist republican party but also by a president who does not know what he believes or is willing to take whatever position he thinks will lead to his reelection. >> i was struck by that and wrote about it. and jonathan of the new republic said unfair argument.
i think itself it is an argument that resonated among supporters of obama. they said his handling of the debt ceiling crisis really did hurt him. he said even though obama has the in-box from hell when he came into office, and even though he has the opposition from hell, he still didn't handle it well. >> jon: let me ask about some of your fellow liberals. bill maher was asking hillary clinton could do a better job. >> right wigers are saying obama was going to get the nomination, who knows if hillary would have done a better job? i would like to point out standard & poor's, they laid this squarely at the seat of the researches causing uncertainty and not caring about revenue
enhancement. to lay this at the feet of the obama, only his fault and congress has an 18% approval rating right now. >> the they blamed the republic republicans. >> they blamed everybody. they blamed the political climate in washington. those are things that obama promised. >> specifics were things about what the republicans did to cause uncertainty to the markets. >> jon: let's bring in liz into the conversation of the media group. blaming the tea party for the downgrade is like blaming the betty ford clinic for alcoholism. >> it's not a spreif they blame the tea party. there are many people especially
who follow the tea party, great we're showing that the tea party can move some legislation in this town. >> jon: i think alan is one of them. >> no one likes the legislation. the tea party is losing steam. you look at the polls, people are less and less interested in the tea party. >> how do they keep driving this debate? >> i'm not name calling. i know you think i am but i'm not doing name calling. >> jon: john kerry labeled this the tea party downgrade. it seemed like a lot of media took it and ran with it. >> i think a lot of media did. some of the media questioned the downgrader, credentials of the downgrader. standard poors did not about enron. >> and enron was a triple "a"
company and went over the cliff. >> they said, oops. there is a lot of blame. there were very few media people saying how do we get out of this? how do we put the pieces together. >> i think it was david axelrod that first said that not john kerry. i think kerry got it from axelrod. >> jon: speaking about the blame game. it doesn't seem like a lot of this is sticking on the president. should he be saying i could have done a better job? >> it's a mea culpa, apologize for what? he has done a good job in terms of negotiation. mitch mcconnell said my major objective is to get him out of office. i don't like what he did in
afghanistan or libya or wished he closed gitmo and said i'm going to invoke the 14 amendment and come around do what i want. [ talking over each other ] >> jon: what about the way the press has treated him on this? the buck stops here. >> i think the media realized they can't carry his water. this was the first instance that the left said we can't make excuses for him anymore. as bill daly said we can't defend the incidence i believe. that is a collective consensus. >> jon: all right. we have spoken to andrea. [ laughter ] >> it's silly to think they have finally turned on obama. the press will stick with him
through thick and thin. >> you're going to have to take this one up during the break with liz. keep on media stories during the week at our website and check out these watch list sections. up next, did you see that controversial cover on newsweek? >> tina brown drives it to another low taking a shot at michele bachmann with unflattering cover and queen of rage label. just something we have come to expect. did the media make their choice in the straw poll? find out next on news watch.
the queen of rage? this came out of a week where a "new york times" columnist where they called the tea party terrorists. this coverage absolutely captured that. >> you know something, michele bachmann shouldn't trust the mean girls because of the womanhood. she would better off building a time machine and falling in love and tour with ike turner. >> jon: editor in chief tina brown and dennis miller reacting to the newsweek cover with the
photo of michele bachmann. something that has received all kinds media attention. calling her the queen of rage. what has been the reaction to that? >> hats off to tina brown who is a genius to get people to talk about her coverage because that is what the media has done. they have look at it left and right and they say it's sexist, national organization of women, surprise, surprise. and martin said, the cover photo didn't support the headline. she didn't look angry and serious. she looked kind of crazy. so if they said queen of craze, it would have been already. >> i'm sure they had 10,000 photos they could have selected. >> i talked to the bachmann campaign, that photo was taken during a lighting test. they were even asked, is this photo going to be used.
they take a couple pictures and someone as beautiful as bachmann looked have likes like they are looking in the other direction. they did it to sarah palin. super close-up picture and put on the cover, sarah palin is one of them in folks, and that is the problem. i think tina brown is struggling to be relevant. i think she is very insanely jealous. >> a bunch of pictures they didn't put on the cover and she looked nutty in all of them. i think she is beautiful woman. >> thing that has to be said. tina brown is a sleaze. that is my opinion. you both stated yours. she will do anything for circulation but this was an
inspired choice because the idea behind the choice she may be nuts. i think she is nuts. you know something, that is a question that hasn't been anticipated. i give her kudos for raising the question even within this motivation. >> nobody has raised the questions, migraine headaches she is accused of being nuts? >> i've seen it everyone. >> conservatives think she is off balance. >> chris matthews have made comments about when she did the rebuttal. when you have jon stewart coming out to defend you and saying its cheap shot. i think there is some validity. >> conservative think that. >> everybody i talked to. >> conservative i mentioned that as an extreme example. you can't possibly sit there without smiling and think this woman comes from the mainstream
and has mainstream views. >> it's not the first time that newsweek is mean-spirited, anti-republican or anti-conservative. hillary clinton when she was running and they would make her look odd or at weird angles. >> alan, we're talking about the coverage they did on newsweek. let me finish, barack obama who looked almost electoral. how about 1987 cover of george h.w. burn, can he fight the wimp factor. >> people get these adjectives attached to them. i think the public will decide that.
>> and liberal "new york times," i'm sorry, what happened to barack obama? >> the liberal "new york times"? if you see something that shows evidence of media bias, e-mail us at fox news watch.com. up next organization a feisty debate in iowa. >> republican presidential candidates go head to head in iowa taking on the issues and taking on the press. and a film about the killing of bin laden has controversy when questions arise about white house access. what is this about. the scenes next on news wat
that sounds more like barack obama to me. >> she said she has a titanium of spine. that is not what we are worried about. you it's the record of results. >> what we would do to lead america whose president has failed to lead who has done mickey mouse games. >> it's trillions of dollars they are spending on these wars. >> america has to learn how to take a joke. >> jon: republican presidential hopefuls taking shots at president obama. but what got more media attention is taking shots at each other. liz, your reaction overall? >> i think it was gingrich's debate. he probably doesn't have a chance. when it comes to knowing american history, being a great orator and being explain complex
matters. he beat all of them. >> he fired back at brett baier and chris wallace both. >> if you are going to be in a debate you need to respond to questions about the things, same thing with herman cain. he said that was joke. it is a joke but you have to expect that in a debate. he shouldn't have academy upset about being asked tough questions. >> it was very feisty stuff. there are a lot of debates that are slow ones but this set a new mark. >> whatever happened to minnesota nice. it was gripping. as bill o'reilly to patriots, to brett and chris for giving those tough questions. we needed those answers. we talked about it. a pinhead for asking that
question of michelle obama who handled -- michele bachmann, sorry. you know, i find submissiveness i define as respect. she was classy. >> you have the biblical view that woman is submissive to your husband and on would you act that way -- she never answered the question. she said i respect my husband this and he respects me. but he told her to go to law school, but she only did it because she was submissive to her husband. is that how she would govern as president of the united states. >> i have to tell you i think it's wonderful that fox hosted the debate but this was a tough debate. i don't think they asked the questions the american people want to know the answers to. this is very much about the beltway and beltway reporters.
>> i would agree with that. a lot of this feedback, the country is falling apart. it wasn't enough on the debt and on the economy and jobs. there was a lot of infighting. you see the headlines, no clear winner, but gingrich was fighting with the moderators. you saw these little fights between pawlenty and bachmann and paul and santorum but other members of the media they had wonderful things to say about brett. they say the questions were tough. >> jon: we have to take one more break. when we come back, controversy over white house access and sensitive documents. controversy surrounds new film about the death of bin laden and concerns about white house access.
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continued threat from terrorism the house on homeland security would have more important topics to discuss than a movie. >> jon: that is jay carney responding that they gave special access to the movie of the killing of osama bin laden. that charge calling peter king the chairman of homeland security to voice concerns over access to such sensitive information. the controversy came about after an article by "new york times" columnist maureen dowd, the movie is scheduled to open and perfectly timed to give a boost to the campaign. movie levels are giving access to most classified mission in that have tried to throw more people in jail for leaking information. so the chairman thinks it's an issue, is it? >> it's a big waste of taxpayer
dollars. because of anti pathy, as jay said, don't they have better things to do than look at movie makers and access? are we this cynical about this white house? >> maureen got her information from somewhere. >> what is the source of her story. she doesn't say. it would not be the first time that the democratic party wasn't the hollywood hand maidin of the democratic party. >> and there is this troops that died in the terrible helicopter crash were brought back to dover air force base. the white house managed to release this photo. is there is a controversy there? >> there was one in the media but it seems like that between that picture and the new yorker story on capturing bin